Indian Cement Industry Outlook: Business Opportunities and Future Growth Potential to 2016

Indian Cement Industry Outlook: Business Opportunities and Future Growth Potential to 2016

Executive Summary

India is ranked as the second-largest producer of cement in the world, only behind China. The Indian cement industry increased in value at a compound annual growth rate (CAGR) of 13.14% during the review period (2007–2011), and is projected to grow at a CAGR of 10.64% over the forecast period (2012–2016). This growth is primarily attributed to the government’s high level of infrastructure spending, and the country’s increasing number of residential and commercial construction activities.

The Indian government invested US$500 billion on infrastructure during the Eleventh Five-Year Plan (2007–2012) and revealed plans to invest a further US$1 trillion on infrastructure during the Twelfth Five-Year Plan (2012–2017). The large-scale investment on various infrastructure projects, including roads, railways, bridges and ports, will generate a huge demand for cement over the forecast period.

Shorter deadlines for builders to complete projects, labor shortages, space constraints in large cities, the growing need for mechanization and the backlog of infrastructure projects are the main factors driving the increased use of ready-mixed concrete (RMC) in India. Large township projects in the suburbs of India’s leading cities where IT zones are prominent are also generating more demand for RMC. Upcoming infrastructure projects, including energy, roads, ports and airport projects, across India will continue to drive the growth of RMC in India over the forecast period.

The Indian cement industry is expected to become more consolidated over the forecast period. Large companies are acquiring small firms, mostly regional firms, to increase their presence across the country and gain instant access to more production facilities. Meanwhile, smaller firms are exiting the industry due to either attractive acquisition deals from large companies or due to the difficulty in sustaining operations following rising input costs.

Key highlights of this title

  • India is the second-largest producer of cement in the world
  • India has surplus production capacity. Despite this, more capacity addition is expected over the forecast period
  • The acceptance of ready-mixed cement is particularly strong in urban centers. The reliability of supply and consistent quality of ready-mixed concrete are the main reasons for the increasing popularity of the product, as these product qualities improve the productivity of builders.
  • The total investment in real estate is projected to reach US$1 trillion over the forecast period. The Indian government invested US$500 billion on infrastructure during the Eleventh Five-Year Plan (2007–2012) and revealed plans to invest a further US$1 trillion on infrastructure during the Twelfth Five-Year Plan (2012–2017). These investments will drive the growth of the cement industry in India over the forecast period.

 Scope

  • This report provides a comprehensive analysis of Indian cement industry
  • It provides historical values for the Indian cement industry for the report’s 2007–2011 review period and forecast figures for the 2012–2016 forecast period
  • It offers a detailed analysis of production capacity, consumption, imports and exports of cement
  • It details the regulatory framework for Indian cement industry
  • It covers an exhaustive summary on key trends, drivers and issues affecting the Indian cement industry
  • It details the competitive landscape in Indian cement industry
  • Analysis of market entry, growth and operational strategies of key players

Reasons to Purchase

  • Make strategic business decisions using top-level historic and forecast market data related to Indian cement industry
  • Assess the growth opportunities and industry dynamics by knowing production capacity, demand, imports and exports figures
  • Identify the key market trends, opportunities and challenges
  • Assess industry structure and competitive landscape
  • Assess market entry, growth and operational strategies of key players

More information available at:

http://bricdata.com/research/report/CN0509MR/

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